Child Tax Credit
A federal tax credit of up to $2,200 per qualifying child under age 17 for 2025 and 2026 (raised from $2,000 by OBBBA). Up to $1,700 is refundable as the Additional Child Tax Credit, benefiting families with little or no tax liability.
The Child Tax Credit (CTC) provides up to $2,200 per qualifying child under age 17 for 2025 and 2026 — the One, Big, Beautiful Bill Act (OBBBA) raised the maximum from $2,000 starting in 2025 and made it permanent. To qualify, the child must be your dependent, a US citizen or resident alien, have a valid Social Security number, and live with you for more than half the year. The credit directly reduces your federal income tax liability dollar for dollar.
Up to $1,700 of the CTC is refundable through the Additional Child Tax Credit (ACTC). Families whose CTC exceeds their tax liability can receive the ACTC as a cash refund, calculated as 15% of earned income above $2,500. This refundable component makes the credit accessible to lower-income working families who owe little or no income tax.
The CTC begins phasing out at a modified AGI of $200,000 for single filers and $400,000 for married filing jointly. For each $1,000 (or fraction thereof) that your MAGI exceeds the threshold, the credit is reduced by $50. A separate $500 nonrefundable credit is available for other dependents who do not qualify for the full CTC, such as older children or elderly parents claimed as dependents.
How it works
The Child Tax Credit is worth up to $2,200 per qualifying child under age 17 for 2025 and 2026, a level OBBBA raised from $2,000 and made permanent rather than letting it revert. To qualify, the child needs a valid Social Security number, must be your dependent, generally a US citizen or resident alien, and must have lived with you for more than half the year. The credit reduces your tax liability dollar for dollar.
You claim it on Form 1040 using Schedule 8812, which also calculates the refundable piece — up to $1,700 per child is refundable as the Additional Child Tax Credit even if it exceeds what you owe in tax, computed as 15% of your earned income above $2,500. That refundable design is what lets lower-income working families benefit from the credit even when they owe little or no federal income tax.
The credit starts phasing out at modified AGI of $200,000 for single filers and $400,000 for married filing jointly, shrinking by $50 for every $1,000 (or part of $1,000) your MAGI sits above the threshold. There's also a separate $500 nonrefundable credit for dependents who don't qualify for the full CTC — older children who've turned 17, or an elderly parent you claim as a dependent, for example.
Example: the phase-out reducing a family's credit
A married couple filing jointly has modified AGI of $410,000 and two qualifying children under 17. Their base credit would be 2 × $2,200, or $4,400.
Their MAGI is $10,000 above the $400,000 phase-out threshold, and the credit is reduced $50 for every $1,000 over that mark: 10 × $50 = $500. Their total Child Tax Credit for the year is $4,400 minus $500, or $3,900.
Frequently asked questions
How much is the Child Tax Credit worth per child in 2025?
At what income does the Child Tax Credit start phasing out?
Can I get the Child Tax Credit for a dependent who's 17 or older?
Related Terms
Additional Child Tax Credit (ACTC)
The refundable portion of the Child Tax Credit, worth up to $1,700 per child for 2025 and 2026. Families who owe less tax than their CTC amount can receive the ACTC as a cash refund.
Earned Income Credit (EITC)
A refundable tax credit for low- to moderate-income workers. The amount depends on income, filing status, and number of qualifying children — worth up to $8,046 in 2025 with three or more children.
Adjusted Gross Income (AGI)
Your gross income minus specific adjustments such as student loan interest, IRA contributions, and self-employment tax. AGI is the starting point for calculating your taxable income.
Child Tax Credit
A tax credit worth up to $2,200 per qualifying child under age 17 for 2025 and 2026 (raised from $2,000 by OBBBA). Up to $1,700 is refundable as the Additional Child Tax Credit, meaning you can receive it even if you owe no tax.